Bitcoin's Wild Ride: A Banker's Bold Take

Christine Lagarde, the head of the European Central Bank (ECB), has never been a fan of Bitcoin. She's been vocal about her doubts, even when the cryptocurrency's value was soaring. In a recent chat on the College Leaders in Finance podcast, she was reminded of her past comments about Bitcoin being "worth nothing. " She stood by her words, calling it a risky bet. When Lagarde first made these comments, Bitcoin was around $35, 000. By the time of the interview, it had skyrocketed to $125, 000. But even with that huge jump, she wasn't convinced. She pointed out that Bitcoin could go up, down, or even disappear. It's all about risk, she said. Lagarde made it clear that she wasn't giving investment advice. She believes people should be free to invest where they want. But she also warned that Bitcoin doesn't meet the ECB's standards for safety, liquidity, and regulatory compliance. So, it's not something the ECB would consider for its reserves. Since Lagarde's comments, Bitcoin's value has taken a hit. It's dropped by 32%, wiping out all its gains for 2025. The ECB, meanwhile, is focusing on launching its own digital currency, the digital euro. They plan to roll it out by mid-2029. At the time of writing, Bitcoin was trading at $85, 486. 98, down 6. 78% in the last 24 hours. It's been a wild ride, and Lagarde's words seem to have held some weight.